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TIP OF THE YEAR 2009: Renishaw (RSW)

SHARE TIP: Renishaw is a high-quality company whose shares have been dragged down in the indiscriminate stock market sell-off
January 9, 2009

BULL POINTS:

â–  Profit growth expected in economic downturn

â–  Wide geographic spread of customers

â–  Strong cash generation and no debt

â–  Benefits from weakening pound

BEAR POINTS:

â–  Exposure to manufacturing

â–  Short order book

IC TIP: Buy at 531p

Last year will be one that most equity investors will want to forget. The FTSE 350 fell 35 per cent over the period, and many will start 2009 sitting on heavy losses. One small consolation could be that shares in some of the better run mid-cap companies - which in normal circumstances attracted premium valuations - have been unable to escape the indiscriminate ravages of the bear market.

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